ARC ENERGY IDEAS

Earlier this year Cheniere Energy and ARC Resources announced a new supply agreement to export Canadian gas from an LNG facility located on the US Gulf Coast. This week on the podcast, Anatol Feygin, Executive Vice President and Chief Commercial Officer at Cheniere and Ryan Berrett, Senior Vice President, Marketing at ARC Resources tell us more about their agreement. Here are some of the questions that Jackie and Peter ask them:  How well positioned is North America versus other potential LNG suppliers to Europe?  By 2030, how much will US LNG exports grow compared with today?  Considering the long transportation distance, does it make economic sense to export Canadian gas from the US Gulf Coast?   With the increasing pull from international markets, do you expect North American gas production will grow? Are ESG attributes important to buyers of LNG?See the press release about the Cheniere Energy and ARC Resources supply agreement: https://lngir.cheniere.com/news-events/press-releases/detail/247/cheniere-corpus-christi-stage-iii-and-arc-resources-signPlease review the ARC Energy Institute disclaimer. 

This week on the podcast we talk about Jackie’s recent op-ed “Blackouts Could Drive a Return to Home Solar” with our guests Gursh Bal and Kai Fahrion, who are the Co-CEO’s of Zeno, a residential home solar solutions provider. Jackie’s op-ed argues that, while reducing power bills has been the historical reason for installing rooftop solar, the biggest push in the future will come from the increasing risk of power outages due to extreme weather. Electric vehicles and new financing options are other factors that are reducing the barriers to adoption. Here are some of the questions Peter and Jackie asked Gursh and Kai:  What is the typical size, cost and payback on a home solar installation?  How can the Ford F-150 Lightning electric truck’s bidirectional feature increase home energy security?   Could a Canadian home go off-grid with these solutions? What is the outlook for residential solar? What are the common concerns when people consider home solar?Other content referenced in this week’s podcast:Zeno’s documentary on Peter’s home solar installationCheck out Zeno’s website: www.livezeno.com  Please review the ARC Energy Institute disclaimer.

Kiewit is one of North America’s largest construction and engineering organizations.  As such, the company has a unique perspective on the pipeline of new infrastructure projects in the United States and Canada.To get a window into what is on the horizon for large energy infrastructure projects, Kiewit’s Matthew Thomas, Vice President, Carbon Capture and Travis Shearer, Vice President, Markets & Strategy, Oil, Gas and Chemicals join this week’s podcast.Here are some of the questions Peter and Jackie ask them:  To what extent are inflation and higher interest rates impacting the pipeline of new infrastructure projects?  What is the outlook for carbon capture projects in North America?  Do you expect blue and green hydrogen projects to be constructed? How has the interest in North American LNG changed since Russia invaded Ukraine?  What other types of clean energy projects are under development? Other content referenced in this week’s podcast includes:From the Energyphile collection, the vignette of “The Methane Pioneer” about an LNG tanker that departed the United States for Europe in 1959   Learn more about Kiewit at: www.kiewit.com/Please review the ARC Energy Institute disclaimer.

In the depths of the COVID pandemic, oilfield activity ground to a halt and service companies were forced to shrink.  While oilfield activity levels have rebounded significantly, they are still below the pre-pandemic peaks. This week, Steve Glanville, President and Chief Operating Officer of STEP Energy Services and Shawn Martens, Co-Founder, VP of Operations at IronSight join the podcast.Here are some of the questions that Peter and Jackie ask:  How much inflation are you seeing now?  Is there a labour shortage for oil and gas workers? If North American E&P companies decided to ramp-up their oil and gas production, would oilfield services be a constraint to growth?  Are oilfield service companies likely to invest in new equipment?  Are E&P companies early adopters or laggards when it comes to digital technology? Other content referenced in this week’s podcast includes:From the Energyphile collection, the vignette of the “Investor Visit”  Peter’s written and audio story from the Energyphile collection “The Investor Visit” when a CEO hosts an investor to visit his oil well in 1915 and provides some timeless adviceSTEP Energy Services website: https://www.stepenergyservices.com/IronSight app website: https://ironsight.app/Please review the ARC Energy Institute disclaimer.

The broad-based Invesco WilderHill Clean Energy ETF is off 60% from its peak in early 2021.  Riskier stocks on the clean energy spectrum have fallen even more.  For a more in-depth perspective, please see Peter’s commentary titled “What is Next for Clean Tech Companies” that explores how the beat-up equity markets will impact clean energy companies going forward and their strategies. To start off this week’s podcast, Jackie and Peter discuss the recent changes in the oil market, including the European Union’s decision to ban Russian oil and the news that OPEC+ will pump more oil this summer than initially expected. Other content referenced in this week’s podcast includes: From the Energyphile collection, the Standard Oil Bulletin about the end of coal.Peter’s written and audio story from the Energyphile collection  “Hubris Defined” - A cautionary tale about arrogance based on the Standard Oil Bulletin of October 1914 about the ease at which coal would be replaced by oil. The WSJ article “ Silicon Valley Investors give start-ups survival advice for downturn.”  Please review the ARC Energy Institute disclaimer.

Natural gas price has been climbing to near record highs in North America.  This week, Jackie and Peter talk about the reasons for high natural gas prices now.Longer term, North American gas markets are undergoing a structural change. To reduce their reliance on Russia, EU countries are turning towards new gas suppliers including the United States. Consequently, a US build-out of LNG export capacity is starting.  The pull from more Canadian and US gas going overseas will change the gas markets. Peter and Jackie finish the podcast talking about the history of natural gas which has undergone many transitions. It started with coal gas and transitioned to nature or natural gas. The United Kingdom was once importing gas from the United States, then Europe grew domestic supply and imported more Russian production. Now the EU is transitioning away from Russia.  In the future, gaseous fuels are likely to transition towards clean hydrogen and Renewable Natural Gas (RNG).Please review the ARC Energy Institute disclaimer.

While the Battle of Alberta is front page news, this week Jackie and Peter take a break from hockey and talk about some other game-changing local headlines.  First, they talk about the political change with Premier Jason Kenney announcing that he is stepping down as leader of the United Conservative Party (UCP).  Next, an Alberta court found the Impact Assessment Act (formerly Bill C-69) to be unconstitutional.  The Act defines the review process for large energy infrastructure projects in Canada.After that, an update on the Canadian oil and gas industry’s fiscal pulse.  With higher oil and gas prices, the outlook for revenue and cashflow for 2022 has increased and can be viewed on the last page of our weekly ARC Energy Charts publication.  Today’s higher prices have significant implications for royalties, specifically, speeding up the timeline for oil sand projects to achieve the higher post-payout royalty rates.  Finally, Peter and Jackie weigh in on the debate about who should pay for Carbon Capture and Storage (CCS) – federal and provincial governments, or industry. Here's the Calgary Herald article Jackie mentions re carbon capture Please review the ARC Energy Institute disclaimer.

This week Heather Ferguson, Senior Vice President, Business Development, Strategy and Corporate Affairs with Ontario Power Generation (OPG) joins the podcast. OPG burned its last piece of coal in 2014 and has committed to being a net-zero company by 2040.  They have also expanded their generation assets beyond Ontario’s borders into the United States. Here are some of the questions Peter and Jackie asked Heather: How will OPG achieve net-zero by 2040?  Is the regulatory process in Canada a barrier to achieving net-zero? What is the state of OPG’s Small Modular Reactor (SMR) projects? How is OPG’s electric car charging business progressing?  Are interconnects across Canada a way to achieve net-zero electricity faster and at a lower cost? Who should pay for zero emissions electricity and infrastructure – the rate payer or the taxpayer?  How are Indigenous voices and concerns represented as OPG proceeds with new projects?See OPG’s Climate Change Plan at  https://www.opg.com/climate-change/Please review the ARC Energy Institute disclaimer.

This week we are delighted to have Stephen Poloz the former Governor of the Bank of Canada.  Stephen was the Bank’s Governor from June 2013 to June 2020 and was at the helm during the early days of the COVID-19 pandemic. Stephen just released a new book titled “The Next Age of Uncertainty” that outlines five tectonic forces that, when they interact together, will create more volatility and risk than the past era. Here are some of the questions that Peter and Jackie asked Stephen: How would you compare the inflation we face today to the period in the 1970s? How do higher interest rates work to reduce inflation? Are there other tools the central bank can use to control inflation? During the early 1980s high interest rates used to fight inflation caused a double dip recession, is that a concern now? What actions were taken by the central bank during the early days of the pandemic?  How concerned are you about Canadian housing prices? Why do you view the future to be more uncertain and volatile? “The Next Age of Uncertainty” is available for purchase from numerous retailers including digital and audio. Here is a link to purchase a hardcover on Amazon.ca: https://www.amazon.ca/Next-Age-Uncertainty-Riskier-Future/dp/0735243905Please review the ARC Energy Institute disclaimer.

This week John Gorman, President and Chief Executive Officer at the Canadian Nuclear Association (CNA) joins the podcast.  John recently wrote an op-ed titled “Examining the role of nuclear in Canada’s Emissions Reduction Plan.”  Here are some of the questions Peter and Jackie asked John: What is the scale and size of the new Small Modular Reactors (SMR)?  Is SMR technology safe?  What about the waste issue? When will the first SMRs be in operation? Is the electricity affordable? And, do you think Canada is poised for leadership in this new generation of reactors? To learn more about the Canadian Nuclear Association visit: https://cna.ca/Please review ARC Energy Institute disclaimer at: https://www.arcenergyinstitute.com/disclaimer/